I am recommending we roll our General Motors (GM) and Micron Technology (MU) puts out one week to generate more income and reduce our net debits on the positions.
GM Sep Week Two (9/10) 49 Put
Current Stock Price: $48.84
Net Debit: $5.65
Action:
- Buy to close the GM Sep Week Two (9/10) 49 Put for around $0.53
- Sell to open the GM Sep Monthly (9/17) 49 Put for around $0.96
- Set your initial credit limit at $0.43, but adjust as needed to roll today
New Net Debit: $5.22
Expiration: After the close on Friday, Sept. 17
Potential Rate of Return: I am targeting breakeven for this position
MU Sep Week Two (9/10) 72 Put
Current Stock Price: $71.91
Net Debit: $8.53
Action:
- Buy to close the MU Sep Week Two (9/10) 72 Put for around $0.75
- Sell to open the MU Sep Monthly (9/17) 72 Put for around $1.36
- Set your initial credit limit at $0.61, but adjust as needed to roll today
New Net Debit: $7.92
Expiration: After the close on Friday, Sept. 17
Potential Rate of Return: I am targeting breakeven for this position